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      Influence of Debt Restructuring Strategy Implementation on Performance of Selected Commercial Banks in Kisumu Kenya

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      African Journal of Empirical Research
      AJER Publishing

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          Abstract

          Kenya witnessed the failure of several banks, such as Imperial Bank and Dubai Bank. The study examined the influence of debt restructuring strategy implementation on the performance of selected commercial banks in Kisumu, Kenya. The research was based on risk management theory. The research design used in this study was a descriptive survey. Kisumu City was chosen because it is one of the fastest-growing cities in Kenya, as it is endowed with natural resources and robust industries centered around the processing of agricultural products, whose contribution to the national economy is immense, making it an epicenter for business in East Africa. The research used 34 operational banks in Kisumu City as the target population for a five-year period from 2017 to 2021. The respondents consisted of 102 managers from the selected banks who were chosen via the purposive sampling method. To collect primary data, structured questionnaires were used. Both descriptive (frequencies, percentages, means, and standard deviations) and inferential statistics (Pearson correlation and hierarchical regression analysis at a significance level of 0.05) were employed to analyze the quantitative data. Findings indicated that debtors are free to take out new loans in order to minimize their overall interest burden and that loan maturities may be extended in order to cut monthly payments. The study established that debt restructuring strategies had a significant positive effect on performance, with a correlation coefficient of 0.633 and an R2 of 0.401. Loan researchers concluded that loaning is considered the main bank operation, with over 70% of bank revenue emanating from loaning activities. The study recommended that commercial bank management should control the volume of credit and incorporate the collection strategy into its credit policy.

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          The correlation between organizational culture and knowledge conversion on corporate performance

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            The corporate governance lessons from the financial crisis

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              Gender diversity and firm performance: evidence from Dutch and Danish boardrooms

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                Author and article information

                Contributors
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                Journal
                African Journal of Empirical Research
                AJERNET
                AJER Publishing
                2709-2607
                July 05 2023
                November 02 2023
                : 4
                : 2
                : 734-744
                Article
                10.51867/ajernet.4.2.74
                05d7f46f-7328-44f6-a165-f9c9ab5b5e6e
                © 2023

                https://creativecommons.org/licenses/by-nc/4.0

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